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Hi Gary,
I had the same problem and the solution is:
On your first install that upgrade now option is checked unchecked the option and save it. When you reopent the property that box should be unchecked. Under all users profile\quicktime it will create a file QuickTime.qtp. overwrite this file when you package quick time and it will resolve this issue.

My question for you...are you getting firwal authentication prompt when you launch the quicktime. It ask for user id and passwd everytime I launch this. Do you know if there is some properties that we can disable this option.